Keeping all properties may limit how far you can go because of servicing problems. So you may have to sell a few, eg. do 4 keep 3 and sell 1, using the profit of this one to go further.

Terryw
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I have Steve’s old wrap pack which I wouldn’t mind selling, but I have lost one of the workbooks to it (I lent it out to someone who never gave it back – and cannot remember who!!)

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Hi Carpe_Diem

Derek had a few good ideas. I love the living on equity concept as you get to keep a property which you would otherwise have sold. If you keep it you get all future growth as well, which you would love if selling (plus all the costs etc).

Hopefully your properties are in high growth areas.

Just keep in mind that most No Doc…[Read more]

The tenant could be bluffing about moving out. What about a compromise, try to get half the increase now and another in 6 months, then link it to the cpi maybe?

Also, may not be much, but having extra rent per week will help your serviceability for borrowing.

Terryw
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Hi

There is usually a sunset clause in the contract. If the building is not complete by this date, either party can usually pull out without penalty. You can use it to your advantage, but so can developers – many have delayed the construction process so they could pull out of the contract and resell at higher prices.

As for deposits, you can try…[Read more]

MJ

I asked this question to my accoutant years ago (great minds think alike), he said the ATO would want you to pay back your loan for the shares if you sold them. Can’t really claim interest on something you no longer own – unless whatetver it was went under maybe.

Terryw
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ANZ may consider it residential.

Terryw
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I don’t think there is any advantage of either with regards to Land Tax now.

Have a look at http://www.lawcentral.com.au, they have a good newsletter which recently went thru the differences between the two.

There is not much difference, they are similar, but maybe limited liability is a factor. If sued, the shares/units may be up for grabs either way…[Read more]

You will probably find the rates for private lending are much higher than normal. Why do you want to go down this path?

Terryw
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I think you will find most banks are ok with Hybrids if the trustee is the same as the unit holder. You only get into trouble if the title is in one name and the loan in another.

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Hi MJ

The ATO will want to look at what the funds were used for. in this case reducing non investment related expenses. Therefore if audited, you may be in trouble if you were to claim interest on the 80% LVR.

(I am not an accountant)

Terryw
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Yes, that is true with Macquarie. You will find it hard, I think, to finance at a high LVR on a Low Doc.

Terryw
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Even Hybrid trusts cannot distribute losses. What they can do is allow you to borrow money to buy units in the trust, and you can then personally claim the interest against your personal income.

But hybrids still do not allow you to claim the expenses – unless may be you can argue the trip etc were related to your investments in your units in the…[Read more]

An unconditional shouldn’t take that long. All they need is a valution, then a few days after that they usually issue the full approval. Strange

Terryw
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It may depend on how much you are after.

ANZ still offer low docs at normal rates for all products for up to 60% LVR, and allow package discountsof up to 0.70%, making the rate from 6.62%. For 80% LVR they only allow certain products, but the package is not available.

RAMS are currently offering 6.72% with no application fee if 70% LVR or at 80%…[Read more]

PTN

Losses cannot be claimed against personal income with trusts. If the property is owned by the trust, then the expenses have to be claimed by the trust, these cannot be claimed by the individual as they do not own the property.

Terryw
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Hi Patrick

What sort of prices ranges are the properties up there?

You may be better off buying a property, getting the grant, living in it for 6months and then renting it out, claiming the deductions – tho you are on a low income so the tax savings would be limited.

You could still claim the property as your main residence and avoid CGT for up…[Read more]

I was talking to a friend about this recently. His parents purchased their home in Sydney for about $16,000 nearly 30 years ago. The place is now worth about $1mil. If they still had an IO loan, then they would still owe $16k. Just 6 months rent would be bale to clear this now.

Terryw
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I beleive it is the 2nd answer. Not sure if it varies from state to state.

Terryw
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Assets owned by a discretionary trust are generally safe if the person goes bankrupt. You may think you will not go bankrupt, but this can happen for many innocent reasons – eg you own a business and your major creditor goes under owning you large sums of money that you can never recover. You business collapses as a result, and you have…[Read more]